The analysis agency Morningstar evaluated 10 H.S.A. plans in October utilizing standards like charges, curiosity on financial savings and funding decisions. (The agency appeared solely at accounts accessible on to people, slightly than these supplied by means of employers, so particulars might fluctuate.) Constancy Investments was the one supplier rated “excessive” general for each spending and investing. Its H.S.A. supplied an rate of interest on financial savings effectively above 2 %, whereas its rivals paid lower than 1 %.

“That’s a giant shortcoming,” mentioned Greg Carlson, senior supervisor analysis analyst at Morningstar.

Listed below are some questions and solutions about well being accounts:

How can I finest keep away from having cash left over in an F.S.A.?

Sara Taylor, senior director of worker spending accounts at the advantages marketing consultant WTW, suggests taking an in depth take a look at your previous medical bills earlier than deciding how a lot to contribute to your F.S.A. “It’s arduous to do, for some individuals,” she mentioned. However your “clarification of advantages” for final yr — the kinds that describe what therapies you had and what share of the price you owe — may help you provide you with an affordable quantity. Was final yr an anomaly since you had main surgical procedure? If that’s the case, you might need to contribute a decrease quantity. Many employers supply on-line instruments that can assist you make an estimate.

It additionally helps to know what you’ll be able to spend F.S.A. cash on. That approach, if you end up with a stability on the finish of the yr, you need to use the cash to purchase eligible over-the-counter gadgets like ache remedy and even sunscreen. A useful useful resource is the F.S.A. Store, which incorporates a web based alphabetical listing of eligible and ineligible gadgets.

If I forfeit money in my F.S.A. to my employer, have I wasted my cash?

Nobody needs to surrender funds, however staff can nonetheless come out forward, in contrast with not contributing, due to the tax advantages of F.S.A. contributions, Mr. Spiegel mentioned. Say a hypothetical employee with a 30 % marginal tax fee (together with federal, state, payroll and native taxes) contributes $1,500 to an F.S.A., realizing $450 in tax financial savings. If the employee forfeits lower than $450 again to the employer, the employee will nonetheless have benefited from collaborating.

How a lot can I contribute to well being accounts in 2024?

This yr, an worker can contribute as much as $3,200 in payroll deductions to an F.S.A. (Few contribute the utmost, nonetheless, probably due to “inertia,” Mr. Spiegel mentioned. The quantity put aside tends to stay fixed yr to yr, maybe as a result of workers aren’t conscious the restrict can change yearly.) The typical contribution in 2022 was just below $1,300.

For H.S.A.s, people can contribute as much as $4,150 in 2024, and households can contribute as much as $8,300. Individuals 55 and older can contribute an additional $1,000. For 2025, the restrict for self-only protection will rise to $4,300, and to $8,550 for household protection.